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GNA Axles (BOM:540124) Financial Strength : 7 (As of Mar. 2025)


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What is GNA Axles Financial Strength?

GNA Axles has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

GNA Axles's Interest Coverage for the quarter that ended in Mar. 2025 was 13.14. GNA Axles's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.16. As of today, GNA Axles's Altman Z-Score is 3.78.


Competitive Comparison of GNA Axles's Financial Strength

For the Auto Parts subindustry, GNA Axles's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


GNA Axles's Financial Strength Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, GNA Axles's Financial Strength distribution charts can be found below:

* The bar in red indicates where GNA Axles's Financial Strength falls into.


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GNA Axles Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

GNA Axles's Interest Expense for the months ended in Mar. 2025 was ₹-27 Mil. Its Operating Income for the months ended in Mar. 2025 was ₹359 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ₹1,006 Mil.

GNA Axles's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*359.263/-27.336
=13.14

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

GNA Axles's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1432.071 + 1006.021) / 15100.064
=0.16

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

GNA Axles has a Z-score of 3.78, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.78 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


GNA Axles  (BOM:540124) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

GNA Axles has the Financial Strength Rank of 7.


GNA Axles Financial Strength Related Terms

Thank you for viewing the detailed overview of GNA Axles's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


GNA Axles Business Description

Traded in Other Exchanges
Address
Phagwara - Hoshiarpur Road, VPO Mehtiana, District Hoshiarpur, Hoshiarpur, PB, IND, 146001
GNA Axles Ltd is engaged in manufacturing automobile components. The product portfolio includes Rear axle shafts, Spindles, and Drive Shafts, of which rear axle shafts contribute majorly to the company's revenue. The product segments of the group are Off-Highway and Commercial Vehicles. The company operates in India and also exports its products to other countries.

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